Item 2.01 Completion of Acquisition or Disposition of Assets
On November 18, 2020, as reported via a Form 8-K under Item 1.01 - Entry into a
Material Agreement on November 19, 2020, Lexaria Bioscience Corp. ("Lexaria")
via its subsidiary Lexaria CanPharm ULC ("CanPharm"), entered into an asset
purchase agreement (the "APA") for the sale of CanPharm's rights as licensee and
licensor to the use and sublicense of Lexaria's DehydraTECH Technology (the
"Asset Sale") in association with products containing 0.3% or greater
tetrahydrocannabinol ("THC") with Hill Street Beverage Company Inc. ("Hill
Street"), a non-related third party corporation incorporated under the laws of
Ontario, Canada.
The closing of the Asset Sale was effected on December 9, 2020 whereby CanPharm
assigned to Hill Street its rights, as licensee, to the license issued by
Lexaria for the use of the DehydraTECH Technology in connection with products
containing 0.3% or more THC and its rights, as licensor, to the third party
licenses whereby CanPharm had sublicensed the use of DehydraTECH. In addition to
the assignment of these rights, CanPharm has also agreed to provide Hill Street
with technical and marketing support services.
As consideration for the Asset Sale, Hill Street has issued CanPharm the
following: (i) CDN$350,000; (ii) 6,031,363 common shares in its authorized share
capital issued at a price of CDN$0.0829 per share and bearing a four month + 1
day hold legend; (iii) a promissory note in the principal amount of
CDN$2,000,000 and bearing interest at a rate of 10% per annum; (iv) a limited
license to use DehydraTECH outside of Canada and the US with certain products
containing 0.3% or greater THC; and (v) the future issuance of common shares
over a 16 month period and equal in value to CDN$1,000,000.
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LEXARIA BIOSCIENCE CORP. 
